Investors Warned off Optimism

THE WEEK: Investors are being warned against too much optimism - while inflation has declined, equities are a better gauge of the stock market

Rodney Hobson 17 January, 2014 | 10:52AM

Let’s not be churlish: to see inflation down to the target 2% is a great psychological boost. But let us also be realistic: it is not all good news by a long chalk.

It is possible that some pundits will start to raise the spectre of deflation again – they seem to derive some sense of satisfaction from confronting a misery that is not on the horizon. Japan may have suffered a decade of downward spiral and parts of Europe may be getting a taste of it but the fact is that inflation in the UK has been persistently too high and there is no sign that we are going into reverse.

In fact, the consumer price index eased back only 0.1% in December and prices on the whole are still rising, just not as quickly. In fact, the retail price index has edged higher, not lower, and is still above CPI.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
AstraZeneca PLC8,549.00 GBX-0.22
Costain Group PLC58.00 GBX-6.45
GlaxoSmithKline PLC1,604.00 GBX0.41
Hays PLC122.90 GBX-1.05
Robert Walters PLC401.50 GBX0.75

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies